HP Wins $3.4 Billion Navy IT Contract

The U.S. Navy has awarded its Next Generation Enterprise Network, or NGEN, contract of up to $3.4 billion to Hewlett Packard Co. to upgrade and run the service’s communications network – a backbone connecting as many as 800,000 users.

The Hewlett Packard team won over a group of companies including Computer Sciences Corp. The five-year NGEN deal was designed to lower prices through competition among the seven vendors who bid for the deal and engender a circumstance wherein the network is able to accommodate technological advances as they emerge, according to Sean Stackley, assistant secretary of the Navy for acquisition, research and development.

“What we want to do is be in an environment where the flexibility of the contract allows the system, the NGEN system, to evolve as technology and requirements evolve and not be stuck inside of a five year window and have to wait until the end of the contract to figure out what comes next,” Stackley told reporters June 27.

Hewlett Packard will lead a team of subcontractors and perform work at as many as 2,500 Navy and Marine Corps locations around the globe to include major bases and single-user sites, service officials explained.

The announcement cites a $321 million initial one-year award to HP as part of an indefinite-delivery/indefinite-quantity, or IDIQ, arrangement which includes four one-year options that may bring the cumulative value of the deal up over $3 billion. If all options are exercised, work on the deal will continue through 2018, according to a Navy statement.

The deal will help the Navy keep pace with fast-moving technological changes in the world of IT, officials said.

“Because of the innovation and the flexibility we brought into this contract, we believe we’ll have a much greater opportunity to transition to the newer and latest technologies that are out there in the IT space at cost,” said Victor Gavin, program executive officer of enterprise information systems.

“Additionally we believe we’ve postured ourselves because of this change to be more aligned with the new and emerging security requirements that will be coming along.”

Gavin said he sees the network migrating toward more of a cloud-based architecture for the future, as a way to lower costs and improve network security.

“We believe that not only the Navy network but that industry in general is going to a more cloud-based architecture because of a lot of reasons — cost as well as security,” he said. “We believe this contract allows us from a technology standpoint to move in that direction. The pace at which we do that, however, is going to be driven by our pace of dealing with our government applications.”

seems like the merry go round of IT systems, I remember when sprnet and niprnet first came on line for NMCI dumpsters filled with all kinds of PCs, first ibm, Unisys, gatgeway Compaq, dell, now hp/Compaq, does it matter if they are all made in china or mexico, with system boards preloaded with who knows what kind of spy software, hope they check them boards .……just saying.…sneakers.….…..

…Um, OK, why can’t the DoD just build American factories, staffed with American citizens, and Military Troops, building AMERICAN equipment…???…We pay ourselves to make our own equipment!…Why do we give American Taxpayer $$$ to the FedGov, to then give that$$$ to FOREIGN Co.‘s, to make stuff in FOREIGN countries, that we then spend MORE Taxpayer $$$ to BUY…???…

CSC would have also provided the best product to match the requirement. I fear this will be an HP only solution. Not that HP is bad, but for LANs cisco rains supreme, especially with the nx-os combining the fabric with ethernet. Seems that is the future.

>Bradford — Thanks for the acronyms. We just got our new computers last week. I’ll be sure to inform my division of the new terms. I am glad we did not get CISCO. I always enjoy the nice breaks we get when the network freezes up.

Thank-you, and you’re welcome…One thing we ALL need, is a bit more humor.….///…if I could think who the artist is, I’d post a link to the song on youtube…it’s an oldie, and goes, “Cisco Kid, was a friend of mine,etc…” Do you know the one I mean?…(…I think *maybe* it’s a group called “War”…???…)…We also, all seem to forget how truly NEW, and RECENT computer systems are…and, they’re always changing, becoming obsolete, getting “upgraded”, etc…no wonder there’s so much downtime!…Have a nice weekend!…

So glad to see that HP won this contract instead of Harris Corp. I worked at Harris Corp when they were a Partner with HP on the NMCI contract and upper management at Harris made a big mistake in trying to win the Prime on Next Gen instead of partnering with HP again. Harris HITS division was a poorly ran operation and one can see this when looking at the Fiasco and outcome of this bid and by also looking at how they manage the FTIFAA program. Government is getting what they pay for by using Harris as a contractor. Harris should stick to making Radios because that is where they have the expertise. So thankful that I’m not of part of the HITS division anymore! Management over HITS are compete idiots.. Looks for HITS to be sold off since NMCI was their big money maker. Serves them right!

CSC and Harris Blew this Gig when they didn’t deliver on the One Net project. Promising something they could not deliver. The management teams at both of these companies should be replaced.. Just saying..